PURPOSE:

The purpose of this report is to request City Council adoption of the proposed resolutions revising the salaries for the classifications of  Principal Electrical Engineer (CTC No. 0790), Manager Transmission and Distribution Engineering (CTC No. 0531), and Power Resources Manager (CTC No. 0633).

BACKGROUND:

In an effort to remain competitive within the utility industry, Burbank Water and Power (BWP) has made continual improvements over the past several years.  To ensure future sustainability, BWP has been devoting considerable time and effort to effective succession planning as part of an ongoing initiative. 

As part of the department�s succession planning goals, BWP conducted a nation-wide recruitment last year for an Electrical Engineer. This recruitment failed to attract any viable qualified candidates.  As such, BWP consulted with Mycoff and Associates, a firm which specializes in recruiting management positions for public utilities.  The firm stated that the current salaries for Principal Electrical Engineer are so substantially below market that they would be unable to effective recruit either locally or nation-wide.  For example, Mycoff and Associates estimated that a competitive market salary for the position of Principal Electrical Engineer would be between $11,250 and $12,150, which is 8.11% to 16.76% above the City�s current range for this position.  The City also conducted a salary comparison among local utility agencies for this position and found that the Principal Electrical Engineer is 5.81% below local industry standards.  This comparison included Los Angeles Department Water & Power (DWP) which is normally not included in the City�s management survey, but is none the less a very viable competitor for management talent.  

ANALYSIS & CONCLUSION:

In order to effectively recruit within this highly aggressive industry, the City must offer wages competitive with the market.  In response to the inability to successfully recruit qualified electrical engineering candidates, BWP would like to increase the salary ranges for three critical positions: Principal Electrical Engineer, Manager Transmission and Distribution Engineering, and Power Resources Manager.

While the Burbank Management Association (BMA) Memorandum of Understanding allows for an additional 5.25% to recruit difficult-to-hire positions, this amount would not be enough to resolve the salary competitiveness issue with any of these three management positions.  Therefore, in an effort to be competitive within the utility industry and to ensure successful succession planning, BWP believes that the salary for Principal Electrical Engineer should be increased to the midpoint of Mycoff�s and Associates recommendation. 

In addition,  BWP believes that the two management positions that are benchmarked to the Principal Electrical Engineer should maintain an appropriate internal relationship since both require extensive electrical engineering background and education.  This is especially critical in that the Principal Electrical Engineer reports directly to the Manager Transmission and Distribution Engineering.  Furthermore, the Power Resource Manager previously benched at 105% of the Principal Electrical Engineer should maintain parity with the Principal Electrical Engineer and be benched at 100% of this classification.  This new internal alignment will continue to reflect the degree of judgment and responsibility required of the Power Resources Manager position, maintain internal equity, and ensure that qualified candidates are attracted for recruitment purposes.  As such, salary increases are being sought for the positions of Manager Transmission and Distribution Engineering and Power Resources Manager. 

It is vital, to both the success and sustainability of BWP, that the City be able to recruit qualified candidates to fill these critical roles.

FISCAL IMPACT:

The salary range for the classification of Manager Transmission and Distribution Engineering is being proposed at $10,593 - $12,870, an increase of 12.44%. The salary range for the classification of Principal Electrical Engineer is being proposed at $9,630 - $11,700, an increase of 12.44%.  The salary range for the classification of Power Resources Manager is being proposed at $9,630 - $11,700, an increase of 7.08%. 

The increases to the current fiscal year�s budget will be offset by salary savings.  The recurring increases will be included in the 2007-2008 Fiscal Year budget.

RECOMMENDATION:

Staff recommends that the City Council adopt the proposed resolutions revising the salaries for the classifications of Principal Electrical Engineer (CTC No. 0790), Manager Transmission and Distribution Engineering (CTC No. 0531), and Power Resources Manager (CTC No. 0633).

Respectfully submitted,

Judie Sarquiz